Senate Bill No. 470
(By Senator Manchin)
[Introduced February 20, 1995; referred to the Committee
A BILL to amend article three, chapter seventeen-a of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
four-a, relating to car rental companies; authorizing an
additional rental tax to be assessed on automobile rentals;
defining terms; providing for the reporting of the
additional tax collected; exempting rental vehicles from the
privilege tax; authorizing audits; and providing for
criminal penalties for violation of this section.
Be it enacted by the Legislature of West Virginia:
That article three, chapter seventeen-a of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section
four-a, to read as follows:
ARTICLE 3. ORIGINAL AND RENEWAL OF REGISTRATION; ISSUANCE OF
CERTIFICATES OF TITLE.
§17A-3-4a. Car rental companies, taxes, reporting and
(a) Notwithstanding any other provision to the contrary,
there shall be imposed in addition to the six percent tax set
forth in section three, article fifteen, chapter eleven of this
code a six percent tax on the gross proceeds of the rental of any
daily rental passenger car. A daily rental passenger car means
a motor vehicle (other than a motorcycle) that is held for
rental, used for the transportation of persons and having a gross
vehicle weight of nine thousand pounds or less.
(b) The additional tax imposed by this section on the
renting of a motor vehicle shall be paid by the person renting
such motor vehicle, collected by the rentor of the motor vehicle,
and remitted to the commissioner of the division of motor
vehicles on or before the twentieth day of the month following
the month in which the gross proceeds from such rental was due.
Along with the tax due, the rentor shall forward a return to the commissioner of the division of motor vehicles upon a form or
forms prescribed and furnished by the division of motor vehicles,
showing the gross proceeds from rentals of all motor vehicles,
and of all daily rental passenger cars, during the preceding
calendar month. If any person fails to pay the tax, the
commissioner of the division of motor vehicles shall bring an
appropriate action for the recovery of such tax plus interest.
(c) A credit may be claimed by the rentor against the
additional rental tax on a daily rental passenger car for any
tangible personal property tax paid on that car.
(d) Rental vehicles are exempt from the five percent
privelege tax set forth in section four, article three, chapter
seventeen of this code. However, in order to qualify for this
exemption, the vehicle must be held exclusively for rental as an
established business, or part of an establishhed business, or
incidental or germane to an established rental business, at the
time that it is first required to be titled in West Virginia.
(e) In every transaction subject to the provisions of this
section, the tax imposed by this section shall be separately
stated from the rental price of the motor vehicle and shall be
paid by the rentor in accordance with the provisions of this section.
(f) The commissioner may audit businesses making the reports
under subsection (b) of this section. Any business assessing the
additional tax authorized under this section which fails to
comply with the reporting requirements of this section or which
files a report which misrepresents the amount of rental car
revenues generated in this state; the amount of additional tax
collected pursuant to this section or any person who counsels,
advises, aids or abets the business in the submission of the
report is guilty of a misdemeanor, and, upon conviction thereof,
shall be fined not to exceed one thousand dollars. Each
violation constitutes a separate offense. The penalties in this
section are in addition to those contained in article nine,
chapter eleven of this code.
NOTE: The purpose of this bill is to authorize an
additional tax to be assessed on automobile rentals, provide for
the reporting of the additional tax collected, exempt rental
vehicles from the privilege tax, authorize audits, and provide
for criminal penalties for violation of this section.
Section four-a, article three, chapter seventeen-a is new;
therefore, strike-throughs and underscoring have been omitted.